Niyogin Fintech Ltd, a technology-focused non-bank lender that counts Hong Kong investor Ward Ferry as a key shareholder, will invest 100 crore rupees ($ 14 million) to fuel the company’s expansion, the company said. in a press release.
The company’s board of directors has approved the “hypergrowth plan” involving up to Rs 100 crore of investment, the company said when announcing its September quarter results.
With this investment, the Mumbai-based company seeks to build a fintech platform infrastructure that enables businesses to deliver contextual financial services to their clients.
Niyogin, formerly known as M3 Global Finance Ltd, is also looking to forge strategic partnerships on the demand and supply side, the company said in its presentation to investors.
The company is building an open platform that offers different financial products that can be quickly adapted to various products and accelerates its customer acquisition strategy.
The Hypergrowth Business Plan to invest Rs 1,000 crore will create the most comprehensive financial inclusion platform offering on the market, enabling the company to grow rapidly and create multiple interconnections with one architecture open and in a modular format, said Amit Rajpal, co-founder and non-executive chairman, Niyogin Fintech Ltd.
The investment follows a multiple jump in the company’s consolidated total income during the September quarter. Niyogin also recorded a gross transaction value of Rs 2,000 crore in the second quarter of the current fiscal year. For the quarter, it also reported consolidated revenue of Rs 26 crore, up 230.5% from last year.
“Our decision to invest additional capital in the business will allow us to expand the addressable market and add more products to make it the most complete fintech infrastructure platform. It will be a holistic system for our partners, experienced as a standalone application, API or SDK depending on their needs, ”said Tashwinder Singh, CEO of Niyogin Fintech Ltd.
Singh, a former KKR executive, was appointed CEO in October last year.
Registered in Chennai, Niyogin is a non-bank finance company (NBFC) specializing in the provision of online loans and finance services. It provides unsecured business loan to micro, small and medium enterprises (MSMEs).
Niyogin also manages the digital wealth platform Moneyfront, which manages more than $ 100 million in assets. He had acquired a 50.1% stake in Moneyfront for Rs 12 crore in 2018 to add product suites in mutual funds and fixed income instruments.
Amit Rajpal and his co-founder Gaurav Patnakar acquired M3 Global Finance at the end of 2016.
Rajpal is a partner of the Marshall Wace hedge fund in Hong Kong. Patnakar worked with The Boston Company Asset Management in New York until 2016 and is now an independent consultant.
In 2017, Niyogin raised Rs 222.5 crore in 2017 from investors, including Ward Ferry. Saber Capital, which was also to participate in the transaction, ultimately did not invest.
A year later, Niyogin had acquired a 50.1% stake in Moneyfront for Rs 12 crore to add product suites in mutual funds and fixed income instruments.
Last year, the fintech company agreed to acquire a 51% stake in iServeU Technology Pvt. Ltd for Rs 59.2 crore ($ 8 million) under a cash and stock deal.